Broadcom’s overall guidance may not have wowed Wall Street after the stock’s big recent run, but “AI is strong and getting stronger,” one analyst noted.

Broadcom, a tech group valued at just $125 billion five years ago, is now one of three key AI suppliers. Broadcom, with a market cap of more than $1.2 trillion, trails Nvidia in terms of market value,

Broadcom (AVGO) shares closed down 5% on Friday after the chipmaker reported a strong fiscal Q2 but issued in-line guidance only for its current financial quarter. However, analysts recommend buying AVGO shares on the post-earnings dip since the company’s release indicated continued momentum in its artificial intelligence offerings.